When investors place their funds in our care, they expect us to manage our assets well. They expect us to practice good stewardship over their hard-earned money. As of this writing, my partners and I hold $41M+ in assets under management (AUM) in the State of Arizona. One person can't manager all of that property alone. Our solution: We build teams. When we manage our assets well via teams, we create a wonderful cycle: 1. Raise the money.. 2. Invest the money in assets. 3. Manage the assets well via teams. 4. Investors notice that we're managing the assets well via teams. 5. Investors invest with us AGAIN. (back to step #1). And the cycle continues. What a wonderful business! https://www.youtube.com/watch?v=q2Fgykcy8mA .

One thing I’ve been reflecting on lately is how raising capital seems to be as much about relationships and credibility as it is about the actual opportunity itself. The more I learn, the more I realize a great deal alone isn’t enough, building trust, communicating clearly, and staying consistent all seem to play a huge role. Personally, I’ve been making more of an effort to connect with people in this community, engage in comment sections, and learn from how others are approaching investor relationships and capital raising. I’m curious to hear from those further along in the journey: What has been the most challenging part of raising capital for you so far, finding the right investors, building trust, structuring deals, or maintaining consistent follow-up?

Here are the pros and cons of debt financing and equity financing in real estate: ​ Debt Financing: Pros: 1. Fixed Return: When you use debt financing, you're typically paying back a loan with a fixed interest rate. This means you know exactly how much you'll owe, providing predictability in your financial obligations. ​ 2. Lower Risk, Lower Return: Debt financing generally involves less risk compared to equity financing. Since lenders are typically paid back before equity investors, they have lower risk exposure. This can result in lower interest rates compared to potential returns offered through equity financing. ​ 3. Retain Upside: Despite paying back the loan with interest, you retain full ownership and control of the property. This means any profits generated beyond the loan repayment belong to you. ​ Cons: 1. Strings Attached: Debt financing often comes with conditions and covenants imposed by lenders. These can include restrictions on how you manage the property, maintain financial ratios, or distribute profits. ​ 2. Default Risk: If you fail to meet your debt obligations, such as making loan payments, you risk defaulting on the loan. This could lead to severe consequences, such as foreclosure or repossession of the property by the lender. ​ Equity Financing: Pros: 1. Return Based on Property Profitability: With equity financing, your return is tied to the performance and profitability of the property. If the property generates higher profits, your potential returns can be greater compared to fixed-interest debt financing. ​ 2. Potential for Higher Returns: Equity financing offers the potential for higher returns compared to debt financing, especially if the property experiences significant appreciation or income growth over time. ​ Cons: 1. Higher Risk: Equity investors are the last to be paid if the property encounters financial difficulties or is sold at a loss. This means they bear higher risk compared to debt lenders and may face losses if the property underperforms.

I’ve got an underwritten 6-unit deal in Jackson Heights. I’m looking for an equity partner. Do you have clients that co-invest or fund deals like this?

Structures are getting tested right now—and the gaps are showing. We’re breaking it down live with Dugan Kelley of Kelley | Clarke Law —a trusted legal partner we work with closely at M1. Advanced Structuring for Today’s Deal Environment May 7 | 1pm ET → How deals are being restructured → Where sponsors are getting exposed → What actually holds up under pressure If you’re in active deals, this is relevant. 👉 Register here